Administration

Board committee discusses presidential assessment process

HERSHEY, Pa. -- Presidential performance assessment is one of the key responsibilities of Penn State’s Board of Trustees, and today (March 19) the board’s Committee on Compensation discussed a process for annual and comprehensive reviews for University President Eric Barron.

“Assessing what has been accomplished and what goals are important moving forward is critical for the leadership of any organization,” said committee Chairman Carl Shaffer.  “We want to develop an assessment that furthers the performance of both the president and the University by establishing clear expectations and open communication.”

At its January meeting the committee received detailed information on the purpose and key components in a presidential assessment process. On Thursday the committee put forward a proposed process.

Barron’s annual review will occur over several months with involvement by members of the compensation committee and a select group of other trustees, a select group of direct reports, an independent adviser and Barron. The purpose is to assess the president’s performance on a regular basis, clarify short-term institutional goals, maintain communications and ensure alignment between the president and board.

Following input from Barron and members of the committee to establish evaluation criteria and goals for the upcoming year, the president will complete a self-assessment of the past year. The adviser will assist by developing an assessment questionnaire for the committee members and board chair and vice chair.

Barron and the compensation committee then determine five to 10 direct reports and key constituents who will participate in the assessment by completing the questionnaire. Some participants may vary from year to year.

The committee will receive and review a summary report of assessments, which also will be shared with the full board. The committee will invite additional feedback during executive session at the board’s July meeting. Barron, the committee, the board chair and vice chair will follow with a meeting to discuss performance assessment for the preceding year, priorities and goals for the next year and any related compensation decisions. The performance evaluation and any compensation decisions would be put to the full board for approval at its July meeting.

A comprehensive review, meanwhile, would be conducted over a similar timeframe every three to four years.  This would be done to achieve a broad and detailed review of the president’s performance with long-term strategic priorities and clarify University goals and priorities. The comprehensive review involves the Board of Trustees, a variety of stakeholders from across the University and an independent adviser to guide the process.

The compensation committee’s operating guidelines require that it recommend the president’s goals and objectives annually for board approval. Under the proposed model, the committee and president would work together to identify evaluation criteria specific to the University. These include performance related to the strategic plan; building relationships within and outside the University; performance in functional areas such as finances, fundraising and planning; alignment with University values and ability to lead positive change.

The committee noted that the process would focus on the wider organizational context in which the president operates and establish clear goals and metrics. It also would emphasize a developmental attitude in evaluating the past and focusing on the future. The process also evaluates the president’s approach to attaining goals.

Last Updated March 23, 2015

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